Applicability of correct rate of duty on inputs permitted to be cleared to DTA from KAFTZ which are originally brought into the zone after availing the benefit of Notification No. 272/79-C.E., dated 18-10-1979 - Instructions regarding - Central Excise - 21/88-CX.8

Applicability of correct rate of duty on inputs permitted to be cleared to DTA from KAFTZ which are originally brought into the zone after availing the benefit of Notification No. 272/79-C.E., dated 18-10-1979 - Instructions regarding Circular No. 21/88-CX.8 Dated 17-5-1988 F. No. 267/141/87-CX.8 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Applicability of correct rate of duty on inputs permitted to be cleared to DTA from KAFTZ which are originally brought into the zone after availing the benefit of Notification No. 272/79-C.E., dated 18-10-1979 - Instructions regarding. Attention is invited to Notification No. 272/79-C.E., dated 18-10-1979 under which goods can be procured without payment of duty within the FTZ for purposes of manufacture of goods meant solely for export. These inputs are required to be used only in the production of goods solely meant for export and actual export thereof. There is no provision for allowing clearance of the inputs as such to DTA once they have been brought into FTZ without payment of duty. Only capital goods can be cleared to DTA after 3 years period subject to fulfilment of certain conditions and on payment of duty. Instances have come to the notice of the Board wherein certain zones have permitted removal of inputs brought into the zone without payment of duty to DTA on payment of duty. This is totally illegal. The Board has taken a serious view of the matter. It is therefore emphasised that the inputs procured without payment of duty should not be permitted to be cleared to DTA unless it is specifically permitted under the exemption notification relating to FTZ.